What is Click-Through Rate and Why Does It Matter

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What is Click-Through Rate and Why Does It Matter?
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• Looking for an answer to your question, what is
  click-through rate, and why does it matter?
  Well, youve come to the right place!
• Search engines, such as Google, put a high
  premium on a good click-through rate (CTR). After
  all, in a PPC campaign, the more someone clicks
  on an ad displayed in a search engine, the more
  money that search engine stands to make.

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However, CTR is equally important to advertisers
as well. When an internet user turns to search
engines, they have a question that they want to
be answered. They have already decided that they
need something and are trying to find it. They
tell the search platform exactly what they are
looking for. As an advertiser, it provides you
with the unique opportunity to capitalize on this
need and offer an internet user the answer that
they are looking for, in the form of your
services, products, and more. The ideal way to do
that is to create a relevant paid search ad that
boosts your click-through rate.
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But what is click-through rate, and why does it
matter? Read on to find out!
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• What Is Click-Through Rate (CTR)?
• Simply put, click-through rate (CTR) is the
  percentage of impressions that result in a click.
  For instance, if your PPC ad had 1,000
  impressions and one click, it will have a 0.1
  CTR. Click-through rate is a metric that tells
  you how relevant internet searchers find your ad.
  If you have a high CTR, internet users are
  finding your ad to be exceedingly relevant.
  However, if your ad has a low CTR, users are not
  finding your ad to be that relevant.
• The ultimate goal of any pay-per-click campaign
  is to rope qualified users into visiting your
  website and performing the desired action, such
  as making a purchase, filling out a contact form,
  etc. CTR is the first step to ensuring the
  success of your PPC campaign as it enables you to
  improve your ads relevancy, which will
  eventually help you derive the desired actions.

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2. What Is a Good CTR? If youre wondering what
a good click-through rate is, the answer is that
it depends on your industry, the keywords you bid
on, and the individual campaigns within your PPC
account. For instance, branded keywords often
generate double-digit click-through rates.
Meanwhile, it isnt unusual for non-branded
keywords to generate less than 1 CTRs.
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3. Why Does Click-Through Rate Matter? CTR isnt
just an indicator of the relevancy of your ads.
It also contributes to your ad rank in search
engines, i.e., the position of your ad on search
result pages. The top position in PPC campaigns
doesnt automatically go to the highest bidder.
It goes to the advertiser with the highest Ad
Rank. Google calculates your rank by measuring
your CTR against an expected CTR for your ad. It
means that if youve run many ads with low CTRs,
Google will assume any new ads you add to your
campaign will have low CTRs as well and might
rank them lower. Its why you must strive to
improve the CTR of your ads as much as possible.
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Your ads CTR also affects its quality score,
which is essentially a measure of its relevancy
calculated by search engines. Quality Score is
calculated based on your expected click-through
rate, landing page experience, and ad relevancy.
A higher CTR will naturally boost your quality
score. Theres no denying that CTR is an
essential metric to measures the success of PPC
campaigns. However, optimizing your CTR should
always go hand in hand with optimizing your
business metrics for your campaign to be
successful. Get in touch with Marketing Tiki to
run a successful PPC campaign!
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THANK YOU
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